In the futures market, it is rare f

In the futures market, it is rare for a futures contract to be closed for delivery until the delivery month. The reason for this is that speculators try to avoid holding a spot and then delivering it, while hedgers try to deliver it because of the date, quality, location, and especially because the price is not suitable for delivery. When an enterprise is advantageous in the spot market but losing in the futures market, it should hedge and liquidate positions in the futures market as soon as possible to reduce losses, rather than expand losses by performance and delivery. And when enterprises defeat in the spot market and futures market advantage, enterprise if you want to sell the contract for delivery, there are two kinds of practice: one is the original spot market to buy rice for delivery, as a result, the enterprise's losses or profits still lock of 200000 yuan, and failed to more conducive to enterprise, the performance liquidated practices and therefore has no practical significance; The other is to sell the original rice in the spot market before the maturity date when the rice price is expected to decline, and then buy the same amount of rice from the spot market at the market price for delivery on the maturity date. As a result, the enterprise can get the extra price difference between the two prices on the spot market. However, it is difficult for enterprises to sell indica rice in the spot market when the price shows a downward trend. Therefore, it is not appropriate for a firm to use performance closing in selling hedging: in fact, it is only in buying hedging that a firm can use performance closing to achieve more favorable results